Do any lenders let you borrow more than house value?

lynz68

What you will also have to keep in mind is you spending £50k on an extension does not automatically add that £50k to the value of your property.

HappyMJ

You could after moving in take out an unsecured personal loan which if your credit rating is very good shouldn't cost much more (interest wise) than the mortgage and then in 5 years time the personal loan will be paid off and you can put the extra money towards the mortgage. Take the mortgage over the longest term possible to reduce the monthly repayments so you have enough income left over to support the repayments on the personal loan.

flossy_splodge

Or you could cut your cloth according now and not expect perfection from the outset.
Oh yes, silly me, no-one wants to WAIT and SAVE its now now now.
If they won't give you what you ask for, maybe, just maybe there's a reason. Like good business???:eek:

mrchiggles

We spent 2 years updating the property step by step, doing rooms as and when we could afford to decorate/refurbish them. After 2 years, initial mortgage deal ran out, had the house revalued and we'd added £35k to it, plus what we'd paid off the mortgage.

Then managed to justify a £50k personal loan to extend it, added another £55k and got the new mortgage to pay off the personal loan.

I guess it chimes with what others have said, if you don't have the money now take it step by step, do the rooms when you can afford them - worth it in the long term.

Foxy-Stoat_3

HappyMJ wrote: »

You could after moving in take out an unsecured personal loan which if your credit rating is very good shouldn't cost much more (interest wise) than the mortgage and then in 5 years time the personal loan will be paid off and you can put the extra money towards the mortgage. Take the mortgage over the longest term possible to reduce the monthly repayments so you have enough income left over to support the repayments on the personal loan.

No chance...£50k over 5 years would be £833 per month without any interest, if such a loan was available.

If spending £50k on this house makes it worth £50k more then its probably not worth doing...just buy the house that you want.

ethank

opinions4u wrote: »

Northern Rock used to.

And hence they are no longer around!

matt8787

I think what we're going to try and do is just get the mortgage as normal and then look to take out 2 x £25k unsecured loans (one each) and pay for the extension that way.

We're reluctant to wait, because the kitchen and bathroom are in a pretty dire state. Plus we'd be concerned about spending money to do the place up (new carpets etc) and then get it all messed up during the building work.

matt8787

(on a related topic, does anybody know if you need to get planning permission to extend the 1st floor (not ground) of the rear of your house (approx 1-2 metres)?

Gordon_Hose

ethank wrote: »

And hence they are no longer around!

I think that was the point of O4U's post

ethank

matt8787 wrote: »

I think what we're going to try and do is just get the mortgage as normal and then look to take out 2 x £25k unsecured loans (one each) and pay for the extension that way.

You need to think about affordability. You could spend £50k on your extension and find that it has increased your house by £25k. How would you pay off the remainder? Can you afford to repay it the amount on personal loan terms?

Have you checked Zoopla for the prices of other houses on the street, particularly those with the extension already?